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April 20, 2021, 7:24 a.m. EDT

Kansas City Southern's stock soars after Canadian National's 'superior' bid valued at $33.7 bln

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By Tomi Kilgore

Shares of Kansas City Southern /zigman2/quotes/200211518/composite KSU +0.62% soared 19% toward a record in premarket trading Tuesday, after Canadian National Railway Co. /zigman2/quotes/208205632/composite CNI +0.91% /zigman2/quotes/203746923/delayed CA:CNR +0.93% announced what it called a "superior proposal" to acquire the railroad operator in a cash-and-stock bid valued at $33.7 billion. Plans for the buyout bid was previously reported by The Wall Street Journal . which would top Canadian Pacific Railway Ltd.'s /zigman2/quotes/204163517/composite CP +1.50% /zigman2/quotes/205690198/delayed CA:CP +1.46% previously agreed on buyout bid. Canadian National said its bid is valued at $325 for each Kansas City Southern share outstanding, a 27% premium to Monday's closing price of $256.40. Under terms of Canadian National's bid, Kansas City Southern shareholders would receive $200 in cash and 1.059 Canandian National shares for each Kansas City Southern share they own. In March, Kansas City Southern had agreed to be acquired by Canadian Pacific in a deal valuing the stock at $275 each and the company at about $25 billion. Kansas City Southern's stock has run up 25.6% year to date through Monday, while the Dow Jones Transportation Average /zigman2/quotes/210598063/realtime DJT +0.69% has advanced 18.3% and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.68% has gained 11.3%.

/zigman2/quotes/200211518/composite
US : U.S.: NYSE
$ 271.40
+1.66 +0.62%
Volume: 335,035
July 23, 2021 4:00p
P/E Ratio
205.73
Dividend Yield
0.80%
Market Cap
$24.54 billion
Rev. per Employee
$403,649
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/zigman2/quotes/208205632/composite
US : U.S.: NYSE
$ 105.89
+0.96 +0.91%
Volume: 1.08M
July 23, 2021 4:00p
P/E Ratio
24.07
Dividend Yield
1.92%
Market Cap
$74.21 billion
Rev. per Employee
$422,570
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/zigman2/quotes/203746923/delayed
CA : Canada: Toronto
$ 132.99
+1.22 +0.93%
Volume: 1.10M
July 23, 2021 4:18p
P/E Ratio
23.61
Dividend Yield
1.85%
Market Cap
$93.28 billion
Rev. per Employee
$566,794
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/zigman2/quotes/204163517/composite
US : U.S.: NYSE
$ 73.89
+1.09 +1.50%
Volume: 1.83M
July 23, 2021 4:00p
P/E Ratio
24.98
Dividend Yield
0.85%
Market Cap
$48.51 billion
Rev. per Employee
$483,444
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/zigman2/quotes/205690198/delayed
CA : Canada: Toronto
$ 92.81
+1.34 +1.46%
Volume: 857,454
July 23, 2021 4:00p
P/E Ratio
23.78
Dividend Yield
0.82%
Market Cap
$60.97 billion
Rev. per Employee
$648,444
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/zigman2/quotes/210598063/realtime
US : Dow Jones Indices
14,756.07
+101.43 +0.69%
Volume: 86.47M
July 23, 2021 5:16p
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
35,061.55
+238.20 +0.68%
Volume: 315.06M
July 23, 2021 5:16p
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